UK Stamp Duty Land Tax 2025 Guide — First-Time Buyer Relief

This page's own description previously said SDLT runs "0%–17%" as though that were the standard band range. It isn't — 0% to 12% is the standard rate structure; 17% only appears as a combined figure once the additional-property surcharge is added on top, described below.

Standard SDLT bands (England & Northern Ireland), from 1 April 2025

SDLT is charged like an income tax band — each portion of the price is taxed at its own rate, not the whole price at the top rate reached.

First-time buyer relief — the threshold that changed

This page previously stated a £425,000 first-time buyer relief limit — that figure is now out of date. From 1 April 2025, first-time buyer relief was reduced: a first-time buyer now pays 0% up to £300,000, then 5% on the portion between £300,001 and £500,000. Above £500,000, first-time buyer relief does not apply at all, and the buyer pays the ordinary standard rates on the whole price instead — not just on the amount above £500,000.

The additional-property surcharge — where "17%" actually comes from

Buying an additional residential property — a second home or buy-to-let, while already owning another — adds a 5 percentage point surcharge on top of every standard band (raised from 3 points, effective 31 October 2024). Combined with the top 12% standard band, that produces a 17% rate on the portion of a very high-value additional property above £1,500,000 — the figure this page's original "0%–17%" description was likely trying to describe, without making clear that 17% only applies to a specific combination (additional property, at the highest price band), not to an ordinary single-home purchase.

Worked example

A first-time buyer purchases their only home for £350,000.

• First £300,000: 0% = £0
• Remaining £50,000 (£350,000 − £300,000): 5% = £50,000 × 5% = £2,500
• Total SDLT: £2,500

Had the same buyer instead purchased at £550,000 — above the £500,000 relief ceiling — first-time buyer relief would not apply at all, and the standard bands would apply to the whole price: £125,000 at 0%, the next £125,000 at 2% (£2,500), and the remaining £300,000 at 5% (£15,000), for a total of £17,500 — despite the price being only 57% higher, the SDLT bill is seven times larger, because crossing £500,000 loses the relief entirely rather than tapering it away gradually.

FAQ

Q: Is the £425,000 first-time buyer threshold still current? A: No — that figure applied before 1 April 2025. Since then, the relief covers only the first £300,000, with partial relief (5% on the excess) up to £500,000 and no relief at all above that.

Q: Does the additional-property surcharge apply to my only home? A: No — it only applies when you already own another residential property at the time of the purchase; it does not apply to an ordinary purchase of your only home.

Q: If I buy an additional property for £2,000,000, is the whole price taxed at 17%? A: No — SDLT is banded, so only the portion of the price in the top band (above £1,500,000) is taxed at the combined 17% (12% standard + 5% surcharge); the lower portions of the price are taxed at their own, lower combined rates.

Sources

Figures verified against HMRC guidance as of 30 July 2026:

• gov.uk / HMRC — SDLT rates from 1 April 2025 (standard bands 0%/2%/5%/10%/12%)
• gov.uk — First-time buyer relief (reduced from a prior £425,000 nil-rate ceiling to £300,000 from 1 April 2025; 5% band to £500,000; relief withdrawn entirely above £500,000)
• gov.uk — Higher rates for additional dwellings (5 percentage point surcharge, raised from 3 points effective 31 October 2024)